Netrada Group Takeover: Arvato Strengthens Growth Platform eCommerce
International service provider Arvato acquires major parts of Hanover-based Netrada Group and combines both companies' eCommerce businesses. The merger turns Arvato into one of Europe's leading service providers for integrated eCommerce services. The combined business activities will jointly generate a turnover of over EUR 300 million; the joint number of employees will increase to over 3,000. The transaction is as yet to be approved by the respective competition authorities.
The acquisition of Netrada is one of Arvato's most significant transactions so far. Thanks to the Netrada takeover, Arvato has considerably strengthened its competitive position on the European eCommerce market whilst also increasing its growth dynamics. Netrada Europe GmbH is one of the leading fashion industry eCommerce and logistics providers and counts fashion houses such as Esprit and C&A amongst its customers. Arvato will profit particularly from Netrada's strong position in the fashion and lifestyle segment. Market researchers are expecting online fashion retail to show two-digit annual growth figures over the next few years throughout Europe.
Achim Berg, Arvato AG CEO and member of the Bertelsmann executive board, says: "The takeover perfectly matches our strategy of growing Arvato into an innovative, flexible and international business partner for relevant customers. Throughout Europe, the eCommerce services market exhibits attractive, sustained dynamics that allow high growth rates. This transaction represents arvato's second major expansion step after last year's takeover of international financial services provider Gothia."
Frank Schirrmeister, Divisional Head of Arvato Supply Chain Management, says: "Once the competition authorities have approved the transaction, Arvato and Netrada will work closely together on the development of the best possible structure to allow extensive cooperation between the units involved. Our aim is clear: We intend to systematically utilize the dynamic market growth in the fashion eCommerce area in order to extensively expand the joint activities." Schirrmeister continues: "In this respect, we are relying on the staff's expertise. In the course of the imminent integration process, we will therefore do everything in our power to ensure that their jobs are safe and the current locations are retained."
Netrada Europe GmbH is a leading e-commerce and logistics service for the fashion industry. As a full-service provider, Netrada Europe covers the entire e-commerce process chain. Its range of services includes the development and operation of web shops, financial services, transportation and logistics, and customer service. Netrada currently operates more than 70 Web shops for 13 international fashion brands. Its major customers include Esprit, C&A, Tommy Hilfiger and Hugo Boss.
